Setting Up Joint Ventures In Azerbaijan

Azerbaijani market is generally open for foreign businesses¹. A foreign company wanting to enter the Azerbaijani market does not have to partner with a local person. If for business reasons the company does not need to establish a joint venture, there are couple of options. We assume that all or substantial of the business activity is carried out in the territory of Azerbaijan.

Registered (Equity) JV

Perhaps most popular and widely used, especially outside the oil and gas industry, form of a registered joint venture (JV) is a limited liability company (LLC). Most privately held companies in Azerbaijan are established in the form of an LLC². The partners join to set up an LLC in which each holds a certain shares. LLCs must be registered with the Azerbaijani Ministry of Taxes.